Pinnacle Financial Partners, Inc. has recently released its 10-Q report, detailing its financial performance and operational activities. The company operates as the bank holding company for Pinnacle Bank, offering a wide range of banking products and services to individuals, businesses, and professional entities in the United States. Pinnacle Financial provides various deposit accounts, treasury management services, commercial and residential loans, investment products, brokerage and investment advisory programs, as well as insurance agency services and merger and acquisition advisory services. The company was incorporated in 2000 and is headquartered in Nashville, Tennessee.
In the 10-Q report, under Item 2. Management's Discussion and Analysis, Pinnacle Financial's management expressed confidence in the company's liquidity to meet all known contractual obligations and unfunded commitments over the next twelve months. The report highlighted outstanding standby letters of credit amounting to $380.1 million and unfunded loan commitments of $14.4 billion as of September 30, 2024. However, the company emphasized that the total commitment level does not necessarily represent future cash requirements, as many commitments are expected to expire without being drawn upon. Pinnacle Bank is positioned to address funding needs for outstanding commitments by liquidating securities available-for-sale or by borrowing and purchasing federal funds from other financial institutions.
Additionally, the report disclosed accrued reserves of $12.5 million related to expected credit losses associated with off-balance sheet commitments as of September 30, 2024. Pinnacle Financial emphasized that it follows the same credit policies and underwriting practices for off-balance sheet instruments as it does for on-balance sheet instruments, evaluating each customer's creditworthiness on a case-by-case basis and determining the amount of collateral based on management's credit evaluation. The company also addressed the impact of recently adopted accounting pronouncements, directing readers to further details in the Form 10-Q. Today the company's shares have moved -3.0% to a price of $118.91. For more information, read the company's full 10-Q submission here.
